FAQ: Can I carry over FSA money?
A flexible spending account (FSA) is a special benefit plan offered by some employers. If your employer offers an FSA, you are able to deposit pre-tax dollars into this account and then spend the money on eligible health care products and services.
In 2020, you can contribute a maximum of $2,750 to an individual FSA account and $5,000 to dependent care FSAs. But FSAs are a use-it-or-lose-it benefit that expires at the end of the calendar year. This means that you lose any money you haven’t spent by Dec. 31.
Some employers offer a March 15 extension or 10-week grace period into the next calendar year during which you can continue to spend your FSA dollars. Others may offer a $500 annual carryover to the next calendar year.
Your FSA may also have a 90-day run-out period at the end of the year. This would allow you additional time to submit claims for already-incurred expenses and is separate from any extensions or rollover of funds.
Each employer’s FSA plan is different, so you should check with your benefits manager or FSA plan provider to determine your specific rollover allowances.
Notes and References
Page updated February 2020